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2020 (12) TMI 809 - AT - Income TaxRequirement of issuing notice u/s. 143(2) in response to the revised return of income filed - HELD THAT:- Under the scheme of the Act, the assessing officer is entitled to assume jurisdiction to scrutinize the return of income filed by assessee only after the issue of notice u/s. 143(2) of the Act within the prescribed time limit. If the A.O. has validly assumed jurisdiction over the original return of income filed by the assessee by issuing notice u/s. 143(2) of the Act and if the assessee files any revised return of income after so assuming the jurisdiction, in our view, there is no requirement of issuing another notice u/s. 143(2) of the Act in response to the revised return of income, since there is no requirement of assuming jurisdiction again. It is well established proposition of law that the revised return of income filed within the prescribed time limit replaces the original return of income. In present case has issued notice u/s. 143(2) of the Act only after filing of revised return of income. As noticed earlier, the revised return of replaces the original return of income and hence, in the facts of the present case, the notice issued by the AO has to be treated as having been issued against the revised return of income only, since the revised return of income was only surviving return of income when the AO issued the notice u/s. 143(2) - No merit in the contentions of the assessee that the A.O. should have issued another notice u/s. 143(2) of the Act against the revised return of income - contention of the assessee that the interest free funds/own funds available with the assessee is more than the value of investment made in the partnership firm - HELD THAT:- Disallowance u/s 14A r.w.r. 8D - contention of the assessee that the interest free funds/own funds available with the assessee is more than the value of investment made in the partnership firm - HELD THAT:- As per decision rendered in the case of Micro Labs Limited [2011 (7) TMI 1152 - KARNATAKA HIGH COURT] no disallowance out of interest expenditure is called for. However, as rightly pointed by Ld. D.R., the above said contention of the assessee requires to be examined on the basis of financial statements of the assessee. Hence, we are of the view that this issue may be restored to the file of the A.O. for examining the same afresh by duly considering the decision rendered by Hon'ble Karnataka High Court in the case of Micro Labs Ltd. (supra). Accordingly, we set aside the order passed by Ld. CIT(A) on the issue of disallowance made out of interest expenditure under rule 8D(ii) and restore the same to the file of the A.O. for examining it afresh.
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